South Korea’s Supreme Court dismisses an appeal by the tax authority, leaving in place a lower-court ruling that favors Google Korea in a corporate tax dispute, according to judicial officials. The case centers on corporate and local income taxes totaling about 154 billion won (around $115 million) imposed by the Seoul tax office.
The tax office had argued that Google Korea’s transfer of income to Google Asia Pacific in Singapore should be taxed in South Korea. It classified the related payments as royalty income tied to the use of copyrights and know-how. Google Korea challenged that treatment in court, saying the payments represent business income for Google Asia Pacific and are therefore not taxable in Korea. The Seoul High Court ruled for Google Korea, and the Supreme Court’s dismissal means that ruling stands.
While the outlets focus on the final outcome, they align on the key issue: the Supreme Court does not conduct a substantive review and the previous decision upholding the cancellation of the tax assessments remains effective.
